re 1901 Madison Ave

I just got a listing in this building http://www.klaramadlin.com/sale_details.asp?listing_id=12466 I will be having an open house on Sunday Feb 24 from 1-2:30

Severe resale restrictions. Something like 50% of the profit is returned to the city to pay off an underlying mortgage. However, because of refinaning with the city it will not. Some units in 1901 and 1919 have been on the market for over a year because of this. Please have your attorney read the offering plan which give the details. And that new listing is way over priced based on other units. The good thing is that the buildings are well maintained.

My real concern is when the real estate taxes kick in. That coupled with what I think are high maintenance costs will make these units too expensive. Wondering why such high maintenance. Thank you for honest answer.

Is there a minimum income required for this building? or just a maximum income?

No minium income just maximum. The co-op does not want debt to income ratio to exceed 36%. There is a 24 hour concierge and a live-in super which affects maintenenance. I am waiting for the most recent financial statement to find out exactly what the flip tax is and when the taxes phase in. In general HDFC co-ops have a 25 year abatement period, this one was built in 1995 co-oped a year or so later

The flip tax is clearly stated in the offering plan. Both buildings just refinanced with the city keeping them HDFC buildings longer. I was very interested in purchasing a unit in 1919, but decided against it after doing some researh. You should also look into the new buildings going up two blocks down. I know Goldwaer hospital is being relocated there. Not sure what else is being built. You never know when you have to resell and these are the things that will hurt the sale and/or keep the prices surpressed. Anyway, the decision is yours. Just thought I'd pass on the information.

Is this hospital relocating to the old hospital space next door to 1901/1919?? I would love to know what research put you on a different track. Can you share? Yes - did look at 1 in the Madison Ave buildings a few blocks south.

the flip tax is 8% of the profit which is paid by the seller and goes into the buildings reserve fund. There was a 50% tax which went to the HDFC but it ended 5 years ago when the mortgage associated with this tax was paid off

Yes, the hospital is taking that space and putting up two additonal buildings on park ave.

kmbroker can you explain why these units go into contract and close 50 to 75% below other units in the area?

Thank you sdeniseed.

I am not sure why these units go for so much less then others. The unit I represent has been upgraded with wood floors, updated kitchen with stainless steel appliances. Some of the others have not and for some reason have "pink" carpeting and old appliances. HDFC buildings generally sell for less then fair market buildings because of income caps, they were designed to stabilize neighborhoods and keep middle class people living in the area

Nothing sells for less than fair market value - they sell at the market. Income restrictions, flip taxes, etc. all have an impact on the market value... This will not change, so do not expect the values will go up unless the restrictions are removed.

That said, if you qualify and can afford it, these are a good value.